How to calculate personal income tax on wages in 2020?

How to calculate personal income tax on wages in 2020?

Our country's laws stipulate that if a worker's wage income reaches the standard for paying wage tax stipulated by the state, then the excess amount must be subject to personal income tax according to the relevant tax rate. So what is the formula for calculating personal income tax on wages in 2020? The following content has been compiled by the editor for you, welcome to read.

1. 2020 wage individual income tax calculation formula The calculation formula for wage individual income tax is: Tax payable = (wage and salary income - "five insurances and one fund" - deductions) × applicable tax rate - quick deductions The starting point for individual income tax is 5,000, and the calculation method using the excess progressive tax rate is as follows:
Tax payment = monthly taxable income * tax rate - quick deductions Actual wages = payable wages - four housing funds - tax payment Monthly taxable income = (payable wages - four housing funds) - 5000
2. Methods of collecting personal income tax on wages Personal income tax is collected through two methods: source withholding and self-declaration. The unit or individual that pays the income is the withholding agent for personal income tax. If a taxpayer obtains salary income from more than two places and has no withholding agent, or if there is a withholding agent but the withholding agent fails to withhold and pay taxes in accordance with the tax law, the taxpayer shall declare and pay taxes on his own.
The generally listed tax-inclusive and tax-exclusive brackets are both income amounts after deducting relevant expenses in accordance with tax laws; second, the tax-inclusive brackets apply to wages and salaries for which taxes are borne by the taxpayer; the tax-exclusive brackets apply to wages and salaries for which taxes are paid by others (units).

<<:  To do a good job in user operations, you need to start from these 6 aspects!

>>:  What is a good retention rate? 3 cases to analyze the core direction of user retention

Recommend

Case Analysis: How does Kugou increase its user base?

This is the fifth article I have written about gr...

Analyze the data operation methods of social products!

Data is an important component and evaluation cri...

Behind the success of pair programming

Let’s explore and analyze the characteristics and...

5,000 words in-depth analysis of Meituan’s 8 major user growth models!

As we all know, the growth of an enterprise is cl...

3 key points: How to disassemble information flow products?

News and information flow has now become the firs...

Information flow advertising, what is the effect of such provocative creativity?

Eyeball economy, an advertisement that can attrac...

APP promotion, how can a single APP reach tens of millions of downloads?

First of all, application promotion should mainly...